STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2003

Mar 13, 2003

GIPPSLAND LIMITED ABN 31 004 766 376

FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2002

DIRECTORS' REPORT

The Directors present the financial report of the economic entity being Gippsland Limited ("the Company") and its controlled entities for the half year ended 31 December 2002.

DIRECTORS

The following persons were Directors of the Company who held office during or since the end of the half year.

Robert John Telford John Morrison Chisholm John Damian Kenny

REVIEW OF OPERATIONS

The consolidated operating loss after tax for the half year was $313,803 (2001 - $188,125).

The Company continued its business of mineral exploration with the main focus being on the development of the Abu Dabab tantalite, tin and feldspar project in Egypt in which Gippsland has a 50% economic interest by way of an incorporated joint venture with the Egyptian Government. The bankable feasibility study has commenced on the project and continuing in accordance with the timetable.

On the 19 November 2002, the Company issued a prospectus in relation to a 1:5 non-renounceable entitlement issue for the issue 15,671,393 fully paid ordinary shares and 15,671,393 free attaching options at a price of 3 cents per share to raise approximately $470,142.

On 30 December 2002, the Company issued and allotted a total of 7,877,810 ordinary fully paid shares and 7,877,810 free attaching options pursuant to the non renounceable entitlement issue to shareholders at a price of 3 cents per share to raise approximately $236,334.

On 15 January 2003, the Company issued the shortfall to the non-renounceable entitlement issue of 7,793,583 ordinary fully paid shares and 7,793,583 free attaching options to raise $233,807. The financial effect of the issue of the shortfall of the entitlement issue of 7,793,583 ordinary fully paid shares and 7,795,583 free attaching options on 15 January 2003 has not been brought to account at balance date.

Signed in accordance with a resolution of the Board and dated 14 March 2003.

ruperd

R J TELFORD DIRECTOR

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2002

	31 December2002Ś.	30 June2002$
CURRENT ASSETSCash assetsReceivables	210,17913,082	270.75424,961
TOTAL CURRENT ASSETS	223,261	295,715
NON CURRENT ASSETSProperty, plant and equipment	15,542	19,225
TOTAL NON CURRENT ASSETS	15,542	19,225
TOTAL ASSETS	238,803	314,940
CURRENT LIABILITIESPayablesProvisions	33.7464,542	37.41914,537
TOTAL CURRENT LIABILITIES	38,288	51,956
TOTAL LIABILITIES	38,288	51,956
NET ASSETS	200.515	262.984
EQUITYContributed equityAccumulated losses	11,649,134(11, 448, 619)	11,397,800(11, 134, 816)
TOTAL EQUITY	200.515	262.984

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31 DECEMBER 2002

	20025	2001S
Revenues from ordinary activities	3.863	724
Employee expenses	(22, 409)	(23, 357)
Depreciation expense	(3,683)	(4, 110)
Other expenses from ordinary activities	(291, 574)	(161, 382)
Loss from ordinary activities before income tax expense	(313,803)	(188, 125)
Income tax expense relating to ordinary activities
Net loss attributable to members of the parent entity	(313.803)	(188.125)
Total changes in equity other than those resulting fromtransactions with owners as owners	(313.803)	(188.125)
Basic loss per share (cents per share)	(0.4)	(0.3)
Diluted loss per share (cents per share)	(0.4)	(0.3)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE HALF YEAR ENDED 31 DECEMBER 2002

	2002$	2001$
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from operationsPayments to suppliers and employeesInterest received	28,065(328, 838)3,864	17.437(211,083)724
Net cash used in operating activities	(296, 909)	(192, 922)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from share issues	236,334
Net cash from financing activities	236,334
Net increase/(decrease) in cash held	(60, 575)	(192, 922)
Add opening cash brought forward	270,754	237,161
Closing cash carried forward	210.179	44.239

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2002

NOTE 1: STATEMENT OF ACCOUNTING POLICIES

BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance. financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial report should be read in conjunction with the Annual Financial Report of Gippsland Limited as at 30 June 2002. It is also recommended that the half-year financial report be considered together with any public announcements made by Gippsland Limited and its controlled entities during the half-year ended 31 December 2002 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

Basis of Accounting $(a)$

The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, applicable Accounting Standards including AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements.

The half-year financial report has been prepared in accordance with the historical cost convention.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

$(b)$ Going Concern

These general purpose half yearly accounts have been prepared on the basis of a going concern. In order to continue the entity's development of its principal business activities it is necessary to raise finance from current or new shareholders. In the event that insufficient finance is able to be raised the going concern basis may not be appropriate with the result that the entity may have to realise its assets and extinguish its liabilities other than in the ordinary course of business and at amount different from those stated in the financial statements. No allowance for such circumstances have been made in the financial statements.

NOTE 2: EVENTS SUBSEQUENT TO REPORTING DATE

On 15 January 2003, the Company issued a total of 7,793,583 ordinary fully paid shares and 7,793,583 free attaching options pursuant to the shortfall of the non-renounceable entitlement issue to shareholders to raise $233,807.

The financial effect of the above transaction has not been brought to account at balance date.

NOTE 3: CONTINGENT LIABILITIES

There have been no changes in contingent liabilities since the last annual reporting date.

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2002

NOTE 4: SEGMENT INFORMATION

The Company operates within the mineral exploration industry in Australia and Egypt.

	Australia		Egypt		Consolidated
	Dec2002S	Dec2001$	Dec2002	Dec2001	Dec2002	Dec2001$
Total Segment Revenue	3.864	724	$\overline{\phantom{a}}$		3.864	724
Segment Result	(159, 868)	(88, 148)	(153,935)	(99.977)	(313.803)	(188,125)

NOTE 5: CONTRIBUTED EQUITY

	31 December2002	31 December2002
	S	Number
Paid up capital:
86,234,776 (June 2002: 78,231,966) fully paid
ordinary shares	11,649,134	86,234,776
Movement
Opening Balance	11.397.800	78.231.966
Issue of 125,000 shares at an issue price of 12
cents each - consultancy services	15,000	125,000
Issue of 7,877,810 shares at an issue price of 3
cents each - Abu Dabbab project funding	236.334	7,877,810
Closing balance	11.649.134	86.234.776

DIRECTOR'S DECLARATION

The directors of the company declare that:

$\mathbf{1}$ The financial statements and notes as set out on pages 3 to 7:

• comply with Accounting Standard AASB 1029: Interim Financial Reporting and the $(a)$ Corporation Regulations 2001; and
• give a true and fair view of the financial position of the consolidated entity as at 31 December $(b)$ 2002 and its performance for the half year ended on that date.
• $,2$ In the Directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Dated this 14th day of March 2003.

ruped

R J TELFORD DIRECTOR

Grant Thornton ®

INDEPENDENT REVIEW REPORT To the members of Gippsland Limited

Scope

We have reviewed the financial report of Gippsland Limited for the half-year ended 31 December 2002 as set out on pages 3 to 8. The financial report includes the consolidated financial statements of the consolidated entity comprising the company and the entities it controlled at the end of half-year or from time to time during the half-year. The company's directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements in Australia and statutory requirements, so as to present a view which is consistent with our understanding of the consolidated entity's financial position, and performance as represented by the results of its operations and its cash flows, and in order for the company to lodge the financial report with the Australian Securities and Investments Commission/Australian Stock Exchange Limited.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the halfyear financial report of Gippsland Limited is not in accordance with:

• the Corporations Act 2001, including: $(a)$
  • $(i)$ giving a true and fair view of the consolidated entity's financial position as at 31 December 2002 and of its performance for the half-year ended on that date; and
  • $(ii)$ complying with Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Regulations 2001; and
• $(b)$ other mandatory professional reporting requirements in Australia.

Inherent Uncertainty Regarding Continuation as a Going Concern

Without qualification to the review opinion expressed above, attention is drawn to the following matter. As a result of the matters described in Note 1(b), unless additional share capital is raised, there is significant uncertainty whether the consolidated entity will be able to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at amounts stated in the financial report.

Let Thodox

Grant Thornton Chartered Accountants

Dated this 14th day of March 2003

Perth, Western Australia

Ean Nyll.

Sean McGurk Partner